YouTube launches what some consider a direct attack on blockchain gaming videos
YouTube has expanded its restrictions on content promoting digital goods gambling, including NFTs and in-game items, raising concerns in the blockchain gaming community about limited visibility for decentralized gaming ecosystems. The platform flagged activities like loot box openings with NFTs or gameplay mimicking gambling, impacting top gaming tokens such as SAND, MANA, and AXS, which have experienced significant declines. Despite this, trading volumes for gaming NFTs like MANA and SAND have risen, indicating institutional interest remains strong. Meanwhile, YouTube has faced accusations from Odysee, a blockchain-based video-sharing platform, for alleged anti-competitive behavior after blocking links to Odysee. This has reignited debates about YouTube's monopoly power and its control over online content.
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YouTube's Crackdown on Blockchain Gaming Videos
YouTube has started what some consider to be a direct attack on blockchain gaming videos. This has sparked concerns within the blockchain gaming community, as it could limit the availability of content that promotes or discusses decentralized gaming ecosystems.
The decision follows YouTube's announcement of new restrictions on content promoting gambling involving digital goods, such as NFTs and in-game items. Specifically, YouTube expanded its ban to include any online gambling involving digital items with real monetary value, tightening the rules on activities tied to NFTs and other virtual goods.
New Guidelines Target NFTs and Digital Gambling
The updated regulations openly point to NFTs, video game skins, and cosmetics as categories now under scrutiny. Many of these are tied to digital betting trends seen in popular games like Counter-Strike 2, where skin gambling has been a longstanding issue.
While blockchain games do not directly promote gambling, YouTube policies allow the platform to act on videos flagged by users. This applies to content featuring gameplay mimicking gambling, such as loot boxes containing NFTs, battles for token rewards, or terms like staking, winning tokens, or high-value NFT drops.
Impact on Gaming Tokens and Blockchain Platforms
Web3 gaming, which often involves Ethereum-based projects and play-to-earn mechanisms, is facing challenges as YouTube’s policy changes could restrict visibility for such platforms. Gaming-specific tokens like SAND and AXS have seen notable effects.
In the last 24 hours, tokens including RENDER and IMX experienced over 9% dips, while MANA and SAND fell by more than 5%. However, on-chain transaction volumes for gaming NFTs have shown resilience—MANA and SAND, for example, saw a 13% surge in trading volumes. This suggests that while sentiment may waver, institutional interest in blockchain gaming remains strong.
Odysee Accuses YouTube of Anti-Competitive Behavior
In related news, YouTube has been accused of anti-competitive behavior by Odysee, a blockchain-based video-sharing platform. Screenshots shared on social media revealed that YouTube blocked Odysee links from appearing in comments and descriptions.
Odysee, launched in 2020, markets itself as a free-speech alternative, where creators can earn crypto tips rather than relying on ad revenue. Its blockchain design ensures videos remain online, even after takedowns. Odysee’s team encouraged users to pressure YouTube officials to resolve the issue, calling the actions anti-competitive.
YouTube's Defense and Market Implications
YouTube responded to the accusations by pointing to its external link and spam rules, which block links associated with scams or misleading content. However, critics argue that with 2.5 billion users on YouTube versus millions on Odysee, this demonstrates YouTube’s monopolistic control over the digital video ecosystem.
Although Odysee has seen growth as a destination for controversial voices, advocacy groups warn that it may inadvertently foster harmful content. Supporters argue the platform proves that decentralized sites can resist takedowns, creating concerns about the balance of power in online video platforms.